Vermont Amends Gift Certificate Laws, Embraces "Groupon" Model

Vermont has amended its gift certificate laws (Vt. Stat. § 2701, et seq.), adding key provisions relating to loyalty, award and promotional certificates, as well as embracing the model of gift certificates that contain both a paid and a promotional value (the so-called "Groupon" model, after the popular web-based group coupon company).   Act 136, House Bill 730, also increased the minimum time period until expiration for non-exempt gift certificates from three to five years, and both added and removed exemptions from the statutory requirements relating to expiration dates, fees and disclosures.  The amendment is effective as of the enactment date, May 18, 2012.

The amendment adds the definition for a loyalty, award, or promotional gift certificate as one that "is issued on a prepaid basis primarily for personal, family or household purposes to a consumer in connection with a loyalty, award, or promotional program and that is redeemable upon presentation to one or